Internal governance

EU legislation requires that institutions have robust governance arrangements, including a clear organisational structure, well defined lines of responsibility, effective risk management processes, control mechanisms and remuneration policies. The internal governance should be appropriate to the nature, scale and complexity of the institution. The main responsibility for internal governance lies with the management body, which is subject to specific suitability requirements. In this respect, the EBA published Guidelines on internal governance and in particular on the assessment of the suitability of members of the management body.

Technical Standards, Guidelines & Recommendations

These draft Guidelines aim at further harmonising institutions’ internal governance arrangements, processes and mechanisms across the EU, in line with the new requirements in this area introduced in the Capital Requirements Directive (CRD) and also taking into account the proportionality principle.

These Guidelines are meant to increase the consistency of information collected on the remuneration practices of credit institutions and investment firms in order to benchmark remuneration trends. As requested by the Capital Requirements Directive, national competent authorities shall collect the information and benchmark remuneration trends at national level while the EBA is in charge of performing the benchmarking at European level. The updates to these Guidelines, which had originally been published on 27 July 2012, follow on from changes in reporting requirements as laid down in the Capital Requirements Directive and Regulation (CRDIV and CRR).

These Guidelines are meant to increase the consistency of information collected on the number of individuals per credit institution in pay brackets of at least 1 million Euros. As requested by the Capital Requirements Directive, national competent authorities shall collect such information for all credit institutions and the EBA shall disclose the data collected on an aggregate home Member State basis. The updates to these Guidelines, which had originally been published on 27 July 2012, follow on from changes in reporting requirements as laid down in the Capital Requirements Directive and Regulation (CRDIV and CRR).

Status: Final and translated into the EU official languages

Opinions, Reports and other Publications

Reports

The European Banking Authority (EBA) issued a benchmarking analysis of diversity practices at EU level showing that only a limited number of institutions have already adopted a diversity policy. In... Read more

The European Banking Authority (EBA) published today its peer review report on the assessment of the suitability of members of the management body and key function holders. The report shows that... Read more